Dive Brief:
- Qdoba has signed 10 franchising agreements for 77 stores in recent weeks, building off the momentum the brand saw in 2024.
- By the end of 2024, the fast casual brand had 16 consecutive quarters of same-store sales growth, according to a press release. This is attracting prospective franchisees at a point when many restaurant brands are seeing sales slide or stagnate.
- Last year, Qdoba entered Arizona with its first freestanding restaurants. The commitments announced Wednesday represent major expansions of its presence in a number of markets.
Dive Insight:
Fast casual chains tended to perform better than other sectors in 2024, and some, like Qdoba’s main competitor, Chipotle, managed to speed up development in 2024 relative to 2023. Qdoba itself signed 22 franchise agreements last year, bringing its unit development pipeline to about 450 stores.
Qdoba is looking to speed up its development, both to cement its status as the second strongest Mexican fast casual brand in the country and to chip away at Chipotle’s lead.
Qdoba’s newest development agreements
Last year, Qdoba began offering a $100,000 incentive to franchisees who committed to and opened additional units by September 2026. Qdoba Chief Development Officer, Jeremy Vitaro, said the incentive and strong unit economics are driving significant franchising success for the brand.
“Qdoba’s growth has never been stronger,” Vitaro said in the press release.
The company has embraced multi-unit franchisees, who tend to have better access to capital and can scale up more quickly than smaller operators. It’s also looking for opportunities outside of traditional locations, like airports, universities, military bases and casinos.
For example, Qdoba signed an agreement with ELPX Restaurant Group to develop an unspecified number of restaurants in U.S. military installations, including some international locations.
